Debt Buster: Know your limit before ‘duty-free’ Euro spree

KNOW YOUR LIMITS: Only 25% Brits know how much booze and cigs they can bring back to the UK

These days we pay the local rate of tax on items we buy when holidaying in Europe. But many of our neighbours enjoy a much lower rate of tax, meaning it can still be a lot cheaper to buy abroad.

Research from Direct Line Travel Insurance reveals only a quarter of British holidaymakers know how much alcohol and cigarettes they can bring back into the UK.

Those returning from outside the EU have an allowance of just 200 cigarettes and one litre of spirits. And any tobacco or alcohol over the allowance that is not declared can be seized.

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RIP OFF: Brit's are getting a rough deal compared to many other European countries

There is also a common myth that there are rules on the amount of tobacco and alcohol that can be brought back from countries within the EU.

In the Direct Line survey, more than a third of Brits claimed to be aware of a limit for importing alcohol and tobacco from other EU destinations.

In fact, HM Revenue and Customs (HMRC) has no limits on how much can be brought in from EU countries, although the goods must be for personal consumption or gifts.

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NO LIMITS: HMRC has no limits on the quantity Brit's bring back as long as they're for them

Holidaymakers are more likely to be asked questions by customs officers if they try to bring in more than 800 cigarettes or more than ten litres of spirits.

The research also revealed that one in 14 Brits who have travelled outside of the EU in the last 12 months and have returned with goods worth over £390 avoided paying customs duty by walking through the “nothing to declare” channel.

In fact, duty of 2.5% should be paid on the value of anything between the £390 allowance and £630. And if you bring in a single item worth over £390, such as a Rolex watch or iPhone 6, you must pay duty on its full value.

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STOCK UP: Top tip is to stock up on reduced price of booze

But just 5% of Brits who holidayed outside the EU in the last 12 months and bought goods worth over £390 declared them to customs.

So even though we don’t have any firm limits on the old favourites of booze and tobacco, we still need to be sensible. My advice is that it’s worth stocking up.

And if you do need to go over the trigger numbers of ten litres of booze for example, make sure it’s all going to be used at an event such as a birthday or Christmas.